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Investors may be wondering whether Repsol shares still offer value after a strong run, or if most of the upside has already been priced in.
The stock last closed at €22.69, with a 2.7% decline over 7 days, a 24.0% gain over 30 days, 38.3% year to date, 100.8% over 1 year, 91.4% over 3 years, and 171.1% over 5 years.
These recent returns have put Repsol firmly on many investors’ radars and raised questions about whether the current price fairly reflects the business. This article is intended to provide evergreen coverage and to help you frame those questions around valuation rather than just recent share moves.
Repsol currently has a value score of 4 out of 6. Next, the focus will turn to how different valuation methods assess the stock, before finishing with a way to think about valuation that ties everything together.
A Discounted Cash Flow model projects a company’s future cash flows and then discounts them back to today, aiming to estimate what the entire stream of cash is worth in the present.
For Repsol, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is €1,208.39m. Analyst inputs and further extrapolations lead to an estimated free cash flow of €2,953m in 2030, with annual projections between now and 2035 provided by a mix of analyst estimates and Simply Wall St extrapolations based on those estimates.
When those projected euro cash flows are discounted back to today, the DCF model arrives at an estimated intrinsic value of €53.52 per share. Compared with the recent share price of €22.69, this implies the stock is 57.6% undervalued according to this model.
This is a single model with its own assumptions. However, it points to a wide gap between price and estimated value.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Repsol is undervalued by 57.6%. Track this in your watchlist or portfolio, or discover 242 more high quality undervalued stocks.
REP Discounted Cash Flow as at Mar 2026
For a profitable company, the P/E ratio is a straightforward way to connect what you pay for the shares with the earnings the business is currently generating. Investors usually expect a higher P/E when they see stronger earnings growth and lower perceived risk, and a lower P/E when growth expectations are modest or risks feel higher.
Story Continues
Repsol currently trades on a P/E of 13.69x. That sits below the Oil and Gas industry average P/E of 15.28x and above the peer group average of 10.75x, so the stock is neither at the top nor at the bottom of the sector’s typical range. To refine this, Simply Wall St calculates a proprietary “Fair Ratio” for Repsol of 16.29x. This is the P/E that might be expected after considering factors such as the company’s earnings growth profile, profit margins, industry, market cap and risk characteristics.
This Fair Ratio is more tailored than a simple comparison with peers or the broad industry because it adjusts for company specific traits rather than assuming all Oil and Gas firms deserve similar multiples. With Repsol’s current P/E of 13.69x sitting below the Fair Ratio of 16.29x, the shares screen as undervalued using this approach.
Result: UNDERVALUED
BME:REP P/E Ratio as at Mar 2026
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Earlier it was mentioned that there is a better way to think about valuation, and on Simply Wall St that takes the form of Narratives. Narratives let you attach a clear story about Repsol’s future to concrete numbers such as your assumed fair value and paths for revenue, earnings and margins. You can then compare that fair value with the current price to help you decide whether you see room to buy, sell or hold, all within an accessible tool on the Community page that updates as new information like earnings or Venezuela news arrives. For example, you can align with a higher fair value view closer to the bullish €17.73 narrative that leans on faster revenue growth and stronger earnings, or a lower fair value stance around €11.00 that is based on revenue contraction and tighter P/E assumptions, and quickly see how those different stories translate into very different opinions on what the shares are worth today.
Do you think there’s more to the story for Repsol? Head over to our Community to see what others are saying!
BME:REP 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include REP.MC.
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